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3 May

Tip of the Week: Tax-Free First Home Savings Account Program


Posted by: Kimberly Walker

This week, several of Canada’s financial institutions are now able to open FTHB tax-free savings accounts. This account will give First Time Home-Buyers the ability to save up to $40,000. Here are a few of the advantages this will provide your clients:

  • Much like an RRSP, contributions to the FTHB tax-free account are tax deductible
  • The plan has an $8,000/yr contribution limit
  • Unused contributions can be carried forward to subsequent years, as long as the lifetime limit of $40,000 is not exceeded.
  • A Home buyer has up to 15 years from their first contribution, or their 71st birthday, whichever comes first, to use the funds for a home purchase

Want even more information about this great plan? Go to this link: Government of Canada website.